Defendants Settle SEC Fraud Charges in "Pay to Play" Case Involving New York State Common Retirement Fund

The Honorable Katherine Polk Failla, U.S. District Judge for the Southern District of New York, entered final judgments against seven defendants in the pending enforcement action arising from a "pay-to-play" scheme involving the New York State's Common Retirement Fund.

Beginning on March 19, 2009, the SEC filed securities fraud and related charges against several participants in the scheme, including Henry Morris, the top political advisor to former New York State Comptroller Alan Hevesi, and David Loglisci, formerly the Deputy Comptroller and the Common Fund's Chief Investment Officer. The SEC alleged that Morris and Loglisci orchestrated a scheme to extract sham finder fees, benefits and other payments from investment management firms seeking to do business with the NY Common Retirement Fund.

In total, the SEC charged 17 defendants. The civil action had been stayed pending the outcome of a parallel criminal action by the NY Attorney General's Office against some of the defendants.

In addition to the judgment entered in the federal court action, administrative orders were issued by the SEC on March 10, 2014.

See: SEC Litigation Release.